Manufacturing Technology Incentives
A bona fide field of technology for SR&ED purposes, manufacturing technology is potentially eligible for SR&ED tax credits for technological advancements in its field provided that the program criteria are met. While the SR&ED program’s roots lay in the original manufacturing tax credit, the criteria for the current SR&ED program are more rigorous. TSGI has the expertise and experience to successfully navigate the course.

Manufacturing Innovations
Considered the heart of the industrial economy in some regions of Canada, hi tech manufacturing benefits from tax credits because of the risky – both in business and technological terms – nature of the investments, which can be substantial in financial terms as well. The federal government recognizes, through the SR&ED tax incentives, the broader benefit to the economy that results if such investments are ultimately viable (although success is not a requirement of the program). It is technological risk that is one of the main criteria of the SR&ED tax incentives, and that risk is what must be documented to be successful in earning the tax credits. Where the innovations take place on the shop floor, segregating those activities associated with technological risks and goals rather than regular operations can be challenging. TSGI can assist in this and other difficult areas of the tax credits.

Prototype Manufacturing – Caution Required
Where prototype manufacturing has occurred or is being considered, similarly careful segregation and documentation of prototype stages or multiple prototype trials must be undertaken. The intent of the prototype creation must, again, be clearly verifiable in order for manufacturing technology incentives to be maximized. Potential subsequent use of a prototype, which may take a wide range of paths, is also a topic where caution is required.

TSGI Experience
TSGI, located in Calgary, Alberta, Canada currently has clients engaged in, and has filed numerous SR&ED claims in, manufacturing technology.